Three Statistics Which Spell Doom for America

There are three numbers that every American should be paying attention to and they are (1) the national deficit, (2) the unfunded liabilities debt, and (3) the derivatives/futures debt. When any reasonable person looks at these three sets of numbers and related statistics, there can only be one conclusion, which I will present at the end of this analysis.

To conduct this analysis, I am going to use some commonly agreed upon figures. The budget deficit is $17 trillion dollars, unfunded (partially or otherwise) mandated social programs constitutes another $220 trillion dollars and the credit swap derivatives total between $1 quadrillion dollars to $1.5 quadrillion dollars. In this analysis, I will use the very conservative $1 quadrillion dollar figure. These figures are not in dispute and therefore provide me with the basis to perform an analysis of what our collective economic futures hold.

Budget Deficit

America takes in $2 trillion dollars per year in tax revenue. The United States has a $17 trillion dollar deficit. How long would it take to pay this debt back? If one can do third grade math, the answer is very simple. On the surface, someone reading this would say we could pay this debt off by in 8.5 years. The correct answer is simpler, we can never pay this debt back. This is the ultimate catch-22. To begin to pay off the debt, we would have to cancel all government services. In this case, you would have no government, only anarchy.

Even if the government could donate $1 trillion dollars of its revenue source to paying down the debt, the government deficit would still be increasing at a ratio of 8.5 to 1 even if we were to reduce the governmental operating expenses by a whopping 50%.

There is no sacrifice that the government, nor the taxpayers can make. There is nothing that can be done which will result in paying off the deficit because from a mathematics standpoint, we are passed the fiscal cliff. From a budget deficit standpoint, our national fate is sealed. We have no hope of paying off the budget deficit. And amazingly, the budget deficit is the least of our financial problems.

The consequences of not paying down this debt are unmistakable and you do not need to be a Wall Street accountant to figure this out. When you take out a loan, you must first collateralize the loan with hard assets. When we default, a desperate Congress will do what third world nations do, namely, borrow the money from the World Bank/IMF. As we have seen on the plains of Africa to Bolivia, when these countries predictably default on loan sharking deals from the World Bank, a country will lose total control of its infrastructure. Our water, our electricity and much of our food supply which is federally supported through various programs will revert to our creditors and they will be able to charge consumers, for these essential services, whatever they want. Maybe now, the imposition of smart meters on all of our homes which will regulate specific power usage, makes a great deal more sense.

If America is allowed to get to the point of national default and the abrogation of all of our national resources, we will indeed be fortunate. I do not believe that this country is going to be allowed to survive intact and live under a banking dictatorship. Before we reach the point of loan default and the installation of new national management which will replace our Congress and our President, this country will have entered a genocidal chapter in its history. We will be rocked by civil war emanating from food riots. The American people could only hope for a loan default as the best possible outcome.

Unfunded Liabilities and Mandates

When we look at Social Security, Medicare, Medicaid and all the government programs that we all take for granted, the price tag is a whopping $222 trillion dollars. These numbers are going to be exacerbated and grow exponentially because the bulk of the baby boomers are entering retirement age. Even if we took every single penny that the federal government takes in and devote it to paying off these social programs, it would take 111 years to pay off this debt. This is simply not possible because the previous statistic is predicated on having no government because if you are paying all the national revenue to the debt, there is no government. With no government, how would we pay any government officials to administrate the system? This does not even include providing for necessary national defense, law enforcementand other essential services. In short, America, we cannot support these social programs for much longer. The game is up. Soon, 30 to 40 million Americans will be without their healthcare, without food and without shelter. Don’t throw bricks at the messenger, the numbers do not lie.

The Derivatives Debt Was the Death Blow to America

In the United States, credit swap derivatives created national debt totals of over one quadrillion dollars. That is one thousand trillion dollars! The entire GDP of the planet is estimated at $66 trillion dollars. And somehow, in the infinite wisdom of Congress in 2008, we falsely and naively believed that a $750 billion transfer of wealth (i.e., Bailout #1) was magically going to save the economy and the collective futures of the American middle class. In short, the debt created by futures speculation is approximately 16 times greater than the sum total of the entire wealth on the planet! And we think we are going to climb out of this? Let’s take a moment and discuss the derivatives debt.

When George W. Bush left office, a gallon of gas was $1.57 per gallon. The rapid increase in the price of fuel during the years since Obama took office is a good example of the destructive nature of thederivatives market. Most of the price gouging which resulted in unprecedented increases in gas prices, and record oil company profits, was due to speculation in futures market especially byGoldman Sachs which just happens to be former Treasury Secretary’s Henry Paulson’s old company. Paulson told Congress in 2008 that if they did not acquiesce and fund Wall Street, there would be blood in the streets and martial law would have to be declared. Congress had their hand on the chicken switch and allowed the US Treasury to be raped by these criminal bankers.

Derivatives are not anything of tangible value such as stocks, bonds, etc. They represent the ultimate illegal money gamein which paper derived from other paper, such asfutures and options, has served to bolster the balance sheets on Wall Street. Futures and options are exchange traded derivatives, but the largest group of derivatives is not even traded on the exchanges. These are called “counterparty derivatives” and consist of such financial entities asmortgage backed securitiesandcredit default swaps. And as a reminder, the Federal Reserve is printing $40 billion dollars each and every month to purchase mortgage backed securities. Why? Because after the collapse they want to own hard, tangible assets, not useless cash. This action, alone, tells you that the bankers are saying that the American economy has hit an iceberg and is sinking fast. The Federal Reserve is metaphorically purchasing all the life boats and are leaving the rest of us to drown.

As I previously stated, it is estimated that the total derivative exposure of the financial system is between one quadrillion and one and a half quadrillion. A quadrillion is 1,000 trillion dollars and it has largely collapsed. What does not get widely reported is that each one of these derivatives transactions required the underwriting of a bank with a high credit rating. This house of cards effectively collapsed the banks who are living on borrowed time along with bail-outs and cash infusion from the Federal Reserve and the outright theft in such debacles as the MERS mortgage fraud, the MF Global theft, and of course the $40 billion dollars being spent each month on mortgage backed securities.

Conclusion

Shovel dirt on America’s grave. The America we knew has died. The present thievery of the banks constitutes the last great American garage sale as the vulture bankers are picking the financial bones of America completely clean. The banks and their executives are trying to steal everything that is not nailed down. They have commenced attacking the pensions and soon it will be the bank accounts, houses, farms and businesses of America. In short, the banks are to come out the other side of a financial collapse with as many tangible assets as possible. TheAmerican middle classis being asked to bear the burden of the entire derivatives market which totals over 16 times the net value of the entire planet. If this financial debt problem had a cure, then ask yourself why so many corporate heads are building homes overseas? Why did George H.W. Bush build a 100,000 acre ranch in Paraguay? Why is NORTHCOM, a combat organization, engaging in continuing nonstop urban riot control training? Why did FEMA and DHS schedule 10 disaster drills between September 25th and November 13th? Are we to believe that all of these factors are unrelated? It is looking more and more like the bail-out money, which was no more than the private theft of public money, is actually doing what the name implies, it is bailing out corporate executives in advance of the coming crash. America is being forced to fund the getaway gifts for those that have stolen so much from the American people!

Once they have our hard assets, it will be anarchy on the streets as very soon, it will be every man for himself. And there is a lot to write on this topic, just not today, I have to go play golf with my son, while I still am able.

42 Comments

All of that $17 trillion debt is looked upon as bond wealth by individuals, exactly like a Madoff ponzi statement was counted as wealth until the curtain was pulled. Baby boomers are deceived by decades of growth of their perceived wealth; eg. pension promises, 401Ks, bank accounts. It all grows as the government spends and Fed prints money.

THERES this nosey little country, that has spawn the worse of the worse,AT one time it had a rule”MIND YOUR OWN BUSINESS”and it was a strong little nation,but it put the noseyest whores it had in charge of everything, trying to make the rest of the world come in line of their way of thinking BY FORCE,up setting the whole world,now every country in the world is blazing mad at them,AND IS WORKING ON A PLAN TO DESTROY THEM,they can’t stand them killing their families,bombing their villages,and murdering their leaders,NOW its the end for them and nothing will stop it from happening,they wanted endless war,SO THE WORLD will give them WAR,they loved seeing blood running down streets in countries they never heard of,NOW they’ll see blood running down every street in their nation,ITS WHAT THEY WANTED…………….

David
October 14, 2013 at 8:03 am

By in large I agree with you on this Dave. I might add that that very nature of money in the US makes its demise a mathematical certainty. Fractional reserve banking means the debt cannot ever be paid off without extinguishing the money supply. Essentially, if you eliminate the debt you eliminate money. People can complain all they want about the ever growing debt but if it’s eliminated you won’t have a dollar in your pocket. That is the nature of debt based money.

Americans are going to be shocked at the breathtaking pace which things will take in the last days of the empire. If you look at the various economic indicators they are accelerating, in some cases going parabolic. It’s not a matter of if but when. Personally I believe America is doomed economically within the next two to four years.
EDITOR’S NOTE: SOONER THAT YOU THINK- WITHOUT HELP FROM THE GNOMES OF ZURICH, THE COLLAPSE WILL BE MUCH SOONER

[…] Here is something to consider, although some might put this into the tinfoil hat category. After all, this is not mainstream media that I am offering. Three Statistics Which Spell Doom for America | Dave Hodges ? The Common Sense Show […]

Commonsence,would tell you ,if you stand on the corner,with your pants around your ankles,and your butt hanging out,Someone will notice and whack you on the butt,Commonsense would tell you ,YOU can’t go around the world and endlessly bomb cities ,towns,and villages,MURDERING MILLIONS OF INNOUCENT FAMILIES,and think you can do this and get away with it forever,YOU CAN’T,I tell everyone,get ready for WAR,they can’t understand why I’am telling them this,COMMONSENCE,has left america,they have become so depraved,attacking and murdering their own children has became an accepted way of life,all signs of commonsense has left america,it is offencive to everyone to even say its wrong to kill children,sadly this nation now preys on the ones least able to fight back………THE LORD,warned,WHAT YOU DO TO THE LEAST,”YOU DO TO ME”….Thats commonsense..OR IT USED TO BE………………

Chris
October 14, 2013 at 9:24 am

The problem is not inflation, the bale outs, too much spending and no money to pay down the debt, etc., etc., etc., etc.; nor is it the derivatives (a.k.a. and correctly labeled as: “The Derivative Death Star”) . These are the MANY examples of the numerous symptoms of the ROOT of the problem.

Let’s go to the root of this problem: “You shall not steal.” Exodus 20: 15. This Commandment from The Great I Am, that became flesh and dwelt among us, is the foundation of all property rights.

The pertinent statute under this Commandment regarding this subject is: “You shall not have in your bag differing weights, a large and a small.” Deuteronomy 25: 13, Leviticus 19: 35-37. “Bag” is what one carries money in.

He commanded gold and silver as the medium of exchange we are to use, primarily silver (e.g., Genesis 23: 14-16; Matthew 26: 15).

He also commanded a fixed fineness and weight, i.e., the shekel of the sanctuary, and that’s what we’re to keep all our valuations and do accounting in. Leviticus 27: 25.

Unjust weights and measures are an abomination to Yahweh, while just weights and measures are His delight. Proverbs 11: 1.

Moreover, we are not to lend upon usury (ANY % interest) to our racial kin. Deuteronomy 23: 19-20.

Many more citations to God’s Economic Laws can be given, but this should suffice for now.

This power to decide what was to be “money” and determine it’s value, as well as the standard of it’s weight and measure was usurped by the god “We The People” via the constitution’s grant of this power to congress:

“The Congress Shall Have Power To … coin Money, regulate the Value thereof … and fix the Standard of Weights and Measures.” Art. 1: Sec. 8 (Also note the power ” … To borrow Money on the credit of the United States …” was granted there as well. NO mention of at No interest, I might add).

The door was opened and the process began when we decided “We The People” should be god (sovereign) and decide what is to be the supreme law of the land, instead of obeying The Great I Am that became flesh and dwelt among us.

Eventually, we wound up with The Federal Reserve Act, which gave the power to issue the currency and control credit (5th. Plank of “The Communist Manifesto”). “Give me the power to issue the currency and control the credit of any nation and I care not who makes it’s laws.” Nathan Rothschild.

We now have a wicked and thieving monetary system of irredeemable Federal Reserve Notes (which are Promissory Notes and NOT payment, but “a mere discharge in equity.”), checks, credit & debit cards, direct deposit, etc., AND NONE OF YOU OWN ANYTHING ‘CAUSE YOU NEVER “PAID” for it!

ESPECIALLY so called “Private Property”. IT’S NOT YOURS! You only have an “Equitable Interest” in it! You know, like: “How much equity do you have in this property”. Get it???

Moreover, we’re all being robbed of the purchasing power of the fiat currency in circulation on a regular basis via the hidden tax called “inflation”, which is really an inflation of the “money” supply !

They even have the vast majority of this nation believing irredeemable Federal Reserve Notes to be, and calling them: “dollars”; just like they have the vast majority believing an “alternate life style” is, and calls sexual perversion: “gay” !

The legislative process provided by the various federal and state constitutions was the vehicle used by the enemy to corrupt over time (via gradual increments) and finally take over.

This nation wanted to determine what was “good and evil” (remember the garden?), instead of enforcing His Perfect Moral Laws.

Malim in se (evil in and of itself as defined by The Great I Am, the ONLY lawgiver) vs. malim prohibitum (evil because someone determines, or legislates, it to be evil).

The only way to save this nation is to turn back to Him, His Perfect Moral Laws, Statutes and Judgments, i.e., His Kingdom/Will On Earth. Seek Him while He may yet be found.

“Come to Me, all who are weary and heavy-laden, And I will give you rest. Take My yoke (i.e., His Law 1 John 5: 2 & 3, as well as His tithe [tax] system) upon you , and learn from Me, for I am gentle and humble in heart; and ‘YOU SHALL FIND REST FOR YOUR SOULS.’ (Jer. 6: 16). My yoke is easy, and My load is light.” Matthew 11: 28 – 30.

He told us that if His people ” … shall humble themselves (e.g., quit thinking we’re the sovereign, take our proper place and quit usurping His), and pray, and seek my face (e.g., He’s to be the ONLY law giver), and turn from their wicked ways (e.g., enforce His Laws, Statutes and Judgments – NOT ours); THEN will I hear from heaven, and will forgive their sin, and will heal their land.”

Peter
October 14, 2013 at 9:25 am

Editor and Readers,

It is getting critical now. Please read below.
The Communist pig from Kenya is removing all our key generals, including the generals assigned to watch our nuclear deterrence. The traitor is working overtime to remove anti-Obama generals and install his stooges BEFORE Martial law is declared.

The unfunded liabilities stated are the present value. Since we don’t have $222 trillion in the bank earning interest, this amount increases every year. The lowest is 5% which is near normal low risk interest rates. The first problem is there isn’t enough money in the world to cover this amount. Then money doesn’t earn interest. Where would $222 trillion be invested? There’s not enough debt and public stock to invest in.

The other problem is income. Based on IRS stats, our current total business and personal income is about $10 trillion. Based on current levels of government spending (all levels), interest (only) on our $60 trillion public and private debt, and putting aside enough to keep the unfunded liabilities from getting worse – just these three items – come to about $20 trillion.

In other words, it would take double our income to keep from going further in the hole.

Structurally there is no way to avoid a financial collapse; however, interest rates should do us in before then.

We’ve had record low interest rates since the crisis started. The rates have nowhere to go but up. Rising rates results in bonds going down. They will also trigger the interest rate bets made with about $400 trillion in derivative contracts. To me this looks like a simultaneous crash of the bond market and the banking system.

You can find the data sources for all these statements (except derivatives) in the book images and links section of my website. Given that the unfunded liabilities are more than we can handle, I don’t spend much time trying to explain derivatives to the general public.

The system cannot be saved. The best we can do is protect ourselves and our loved ones. What will be important is raising food, access to water, sanitation, and shelter (that doesn’t rely on oil or electricity). You just can’t wait for the event to get ready.
EDITOR’S NOTE: I AM AFRAID THAT I HAVE TO STAND CORRECTED! THE FIGURE, $222 TRILLION DOLLARS, IS A STATE-DEPENDENT FIGURE IN THAT IT ONLY REPRESENTS WHAT IS TODAY. THE NEXT INCREMENTAL MOVE IN THIS NUMBER WILL CRUSH AMERICA! THANKS FOR THE CORRECTION.

In March 2010, I wrote the following in a letter about Obamacare which I think is still true—
“Health care reform was needed, but not the outrageous health care bill that was passed. The most disturbing thing about the health care bill, other than bribes, threats, corruption, kickbacks and being done behind closed doors, was that the big insurance companies and big phama had a large part in writing the bill, all the while claiming they were against the bill! What a travesty!
Now that the health care bill has been signed into law, the American people will find out what a Trojan Horse it really is. It is all about income and wealth redistribution and lowering the tide on all boats so that everyone becomes stuck in the mud of poor and reduced health care. Making everyone a ward of the state is the communist way of social justice!
While millions of uninsured will be eligible for government-controlled-and-administered health care, the cost in new draconian taxes to be phased in over several years will enslave us all. And who will reap the tremendous windfall from all the taxes that will go toward government programs, subsidies and paying interest on the huge debt? Why the international
central bankers and the Federal Reserve, of course!
Related to this, in a stealthy move at the same time the health care bill was being passed,
Congress passed the financial regulatory bill on March 22, 2010, which now makes the U.S. part of a global system, bringing down the final barrier between the U.S. and the rest of the world. With this bill passing, international bankers will be able to control credit unions, insurance and mortgages here in this country. The U.S. is now one step closer to losing its sovereignty and becoming part of the New World Order and a One World Government.
And to carry out the international bankers dirty work, federal government agencies, the IRS in particular, but the EPA as well, will be handed dictatorial power to collect massive tax increases that will destroy the economy and the middle class in this country. But maybe that’s what Obama intended when he talked about transforming this country!”
Here was what Thomas Sowell, in his March 17, 2010, column said, “In a swindle that would
make Bernie Madoff look like an amateur, Barack Obama has gotten a substantial segment of the population to believe that he can add millions of people to the government-insusred rolls without increasing the already record-breaking federal deficit.”
Just this month, in a MoneyMorning.com report, ‘Will Pelosi Cost You Your Full-Time Job?’,
here are some excerpts— “…on top of higher premiums, Obamacare will create no fewer than
20 new taxes or tax hikes on the American people. Most of the new taxes go into effect Jan. 1, 2014, but they are already infuriating millions of Americans. The Obama administration has
even given the IRS an extra $500 million to enforce the rules and regulations of Obamacare.
… “Many fear Obamacare with its high insurance costs and new taxes, could provide the middle class a fatal blow. Of course, the Obamacare plan was primarily designed to decrease
the number of uninsured Americans and reduce healthcare costs.” ((Yeah, right!!)) “Experts are
saying it will have the opposite effect. In fact, it’s estimated that Obamacare will cost the average taxpayer nearly $6,000 in extra taxes. …Costs will GO UP and quality will GO DOWN!”
A final comment: Big Brother’s intrusion into our private lives is becoming worse all the time and our liberty and freedom are slipping away before our very eyes!…

Rose
October 14, 2013 at 11:06 am

Excellent article, but I especially loved the last sentence. Building relationships and making memories in the midst of the unrest is so important. One day soon it may be all we have. Enjoy the day with your son.

Dave
You write: “The America we knew has died.” But the processes you so-clear-headedly describe are global, something you also note. Have you asked yourself if it’s possible that the capitalist system of production and distribution, like the hunting-and-gathering, nomadic-slave and feudal productive-distributive orders which preceded it, has now reached the stage at which it’s no longer capable of providing social existence for tens-of-millions of people and therefore will, like those predecessor structures, have to be razed and replaced?
Ted

EDITOR’S NOTE: You raise some good points. We are going backwards. Will it be feudalism? It could? In some respects this is uncharted territory. Obama is well on his way to destroying our economic base in a way that it will not recover.

Chris is correct. We cannot vote or legislate (via the Constitution or any other man-made document) ourselves off the cliff America presently finds herself. We must repent ourselves off, beginning with our national idol and it’s humanistic god WE THE PEOPLE, which is just a modern form of Baal and every man (whether individually, collectively, or by way of representation) doing that which is right in his own eyes, as per Judges 21:25.

Find out how much you really know about the Constitution as compared to the Bible. Take our Constitution Survey at http://www.bibleversusconstitution.org/ConstitutionSurvey.html and receive a complimentary copy of the 85-page “Primer” of the 565-page “Bible Law vs. the United States Constitution: The Christian Perspective.”

NW Native
October 14, 2013 at 2:29 pm

Here is my modest proposal. Unknown to most working people companies can
only withhold “tax” payments from their paychecks ONLY with the permission
of worker via W2 forms. Likewise any nongovernmental worker can withdraw
their permission via the W2.
Every single nongovernmental worker should (must) stop all withholding of
monies from their pay checks and stop filling out the 1040 confession
sheets.
Of courses this will never happen with the brain dead Americans and will not prevent the coming collapse and descent into barbarism, But at least if by some miracle it were to happen at least the common people could get in a few licks
before the imperial collapse and the new age of feudalism descends upon the once shining city on the hill.

yeah, & it’s the 14th consecutive year the nobel of economy goes to an american … actually, this year, 3 of them !! and what for ? “trend-spotting” -:)

oot
October 14, 2013 at 3:10 pm

David-the-commenter (above): Your analysis is completely incorrect regarding debt based money. Search for Ann Barnhardt on youtube and find her last four videos which explain banking and collateral for a better understanding.

I am replying to the above “David October 14, 2013 at 8:03 am
By in large I agree with you on this Dave. I might add tha”t that very nature of money in the US makes its demise a mathematical certainty. Fractional reserve banking means the debt cannot ever be paid off without extinguishing the money supply”

EDITOR’S NOTE: JUST ONE MORE PIECE YOU ARE OFFERING, NOTHING IN OPPOSITION TO WHAT IS WRITTEN

THe America we knew is dead is not a bad thing, we need the America we had before the treasonous Lincoln stabbed the old republic in the back, crushing thr Jeffersonian governement model for ever!

Donna
October 14, 2013 at 9:21 pm

I have been hearing that the US is going to collapse for years. I see all kinds of new building in my city of a population of 67,000+. Its hard to collate the new building of different businesses and the US dollar collapsing. I have been stocking up on things as I do not make enough money to be a real “prepper”. At times though I feel crazy for doing so. I have heard the stories or rumors of “false flags” happening in October, November, etc…the latest of the testing of our electrical grid coming up in November. I do believe our gov’t is very dirty and Obama is evil incarnate. I believe Bush knew and may have been a part of 9/11. I believe all of this, but I just keep hearing maybe the dollar will collapse (2009, 2010, 2011, 2012, 2013) and now 2014. I know there is no magic 8 ball to have that will tell when this will happen, but can you see how an average everyday citizen can get desensitized after hearing this for the last 5 years? I am going to keep on doing what I have been as far as buying extra goods. I can only do so much with my income, but for certain I can pray that God will take care me.

An Observer
October 14, 2013 at 10:35 pm

Jeez. Can anyone here actually spell or write a full sentence? The almost universal ineptitude demonstrated by commenters here when it comes to rudimentary rules of the English language *kinda* casts doubt on their “analysis” of rather complicated monetary matters.

The fact is, Obama is a corporatist. He is not a communist or a Marxist. His administration is riddled with Bush leftovers, and anyone in any position of power has deep ties to the financial and/or defense industries. He works for the banksters and the military-industrial complex–just like all the rest of ’em.

Let’s dispense with the idiotic rants about socialism! Obama doesn’t give a rip about the middle class. Why are you guys wasting your time worrying about indigent black people scamming a few bucks from the system every month when you *should* be worried about this instead:

the beginning of the end,slowly at first then sudden destruction. wait until the u.s. is fragmenting with its anglo/european freinds and then the russians and the chinese will move suddenly to take over the mess…no mercy shown….their time will come when the spiritual forces finish the job. god bless america the false prophet.

jake
October 15, 2013 at 2:40 am

could’t we just put a 1 dollar per trasaction tax on wall street, then eliminate all other taxes, except a 5 cent national sales tax, 4 cents to states and 1 to national defense. we could even seize the 46 trillion dollars bernanke, embezzeled between 2007 and 2011. then declare all fake debt created by the banks, for the banks benefit, and then finance state based rebuild of manufacturing, consumers needs, not petro/chemical/banking desires

Lahdahn
October 15, 2013 at 3:27 am

As a baby boomer, I saw this coming years ago when the S&L started failing. I left America in 2006, emptied my bank accounts from Bank of America as well as my retirements accounts at 15% penatlies. Went to Ghana and brought some land prior to Bush buying his. The only person out of 6 sibblings who followed my example was my sister who retired from the corrections services in NYC. When asked why, she said because my brother said so. Now she has at least one house paid off as she lost the other two…I read your book georgie boy.

Harv
October 15, 2013 at 3:55 am

The solution is clear. A world war to be started that over-shadows and effectively cancels most of that debt.
…Or else, the aliens land and save our asses. –And I’m only half joking there.

Gordon
October 15, 2013 at 5:04 am

How did you confuse budget deficit with debt? The budget deficit is the difference between what a government takes in from taxes and other revenues and what it spends. The US government takes in about $2.3 trillion dollars and spends about $3.5 trillion dollars. The budget deficit is then $1.2 trillion dollars. The debt is $17 trillion dollars.

Good post. I was surprised not to see statistics on the ratio of single mother households, rate of divorce, stats in childrens prescriptions for psychotropic drugs, demographic shift to hispanics, influx of illegals, college graduation drop in males, outsourcing growth, decline in middle class jobs, or other horrendous geo-demographic trends that also back up your assertion.

EDITOR’S NOTE: YOU ARE CORRECT, BUT IT IS AN ARTICLE, NOT A BOOK. aND DON’T FORGET ABOUT LITERACY AND SAT SCORES.

Hi Dave, It’s really nice to read and go through the stats you have provided. Yes, they are true. I do agree that there are fundamental flaws in the system. War mongering attitude in the past has not helped our economy in any way and a large part of the HUGE DEBT is due to the reason of financing wars we fought in the last one and half decades. What was the productivity of those wars monetarily? It has been negative. So, there is intrinsic and basic flaw in the system itself. No doubt in it. However, having saying that, we should not forget that default of US will bring doom not only for the economy but for the entire world. The existing flaws can be corrected in the long run, if financial prudence is shown by our Senators and Congressmen. Therefore, we should try to bring all the politicians on board and make them agree on the basic aspect of saving economy from a looming default.

UncleMeat
October 15, 2013 at 5:29 am

It’s time to repudiate the debt. These are all unregulated banker casino games and do not belong to the people. It will take a political revolt but having all these bought and paid for pols make this highly unlikely.

Scotty
October 15, 2013 at 6:33 am

Hard hitting article which shows the depth of the economic hole that has been dug by the bankers, financial speculators and the politicians in their pockets. However, I feel a need to do a little nitpicking because it takes a bit of interpretation to decipher what you mean by the terms “deficit” and “debt”. You seem to use these terms interchangeably and that detracts from the power of your presentation…..

eg.
.
“The budget deficit is $17 trillion dollars…” No, the debt is $17 trillion; the budget deficit is currently running at about $1 trillion/year.

“Even if the government could donate $1 trillion dollars of its revenue source to paying down the debt, the government deficit would still be increasing at a ratio of 8.5 to 1″….No, it is impossible to pay down the debt while any deficit spending takes place. Deficit spending is increasing, but not at a rate of 850%.

Used properly, the deficit speaks of the gap between what government takes in and what it spends. The debt reflects the total of what it currently owes due to its deficit spending. Deficit spending (spending more than is taken in) increases the debt (the amount owed). The two are thus related but not the same things.

walt
October 15, 2013 at 6:44 am

It’s all relative.
I owe the credit card 20 bucks. I have 1 dollar to my name and less next month, year……….!
I pay less than the minimum amount and accrue a monthly penalty plus interest every month- indefinitely! Soon, I am going to owe more than my credit limit. So I ask that my limit be raised so I can continue borrowing what I can’t pay for.
The only way out is Death!

Everyone discussing this “debt” is ignoring the fact that it is created out of thin air, and all “money” is a “debt” to those who created it. America’s creditors did not loan America anything, they merely created the credit “money” and loaned it to the government. It is complete FRAUD. If the federal reserve corporation can create “money” (credit) with a bookkeeping entry, loan it to the government at interest (without creating the interest, by the way), then why cannot the government create the “money” (credit) with which to pay it off?
The debt is fraudulent as is the federal reserve system. If a private person did exactly the same act as does the federal reserve in the creation of “money”, he would be in prison. In fact, some have, and are! So WHY do Americans refuse to face the fact that in reality there is NO debt. It’s all an illusion created in the books of the international banking cartel who owns the federal reserve system.

EDITOR’S NOTE: YOU ARE CORRECT. BETWEEN UNDERGROUND MINERAL RESOURCES HELD BY THE GOVERNMENT AND THE CAFR’S AND WHAT YOU SAYING ABOUT PHONEY MONEY DEBT, I AGREE. HOWEVER, DEBT LIKE CONDITIONS ARE BEING IMPOSED BECAUSE THE CENTRAL BANKERS CONTROL THE NARRATIVE AND THAT IS WHAT I AM TRYING TO CHANGE HERE. THANKS FOR THE TIMELY COMMENTS.

134h5jhj
October 15, 2013 at 10:08 am

What we “owe” was created out of fraud. Repudiate the debt and start over. Wipe the slate clean and get back to work. No more “problem.”
EDITOR’S NOTE: WON’T HAPPEN WITHOUT A FIGHT- THE CENTRAL BANKERS AREN’T JUST GOING TO GIVE US OUR COUNTRY BACK

abinico warez
October 15, 2013 at 12:11 pm

Tax the rich – yeah, I feel your pain, but tax the rich anyways. They have the money, that’s why they are called the rich. But most importantly, pass a transactions tax on all Wall St type of activity – the plutocrats hate and fear this idea because it is very hard to
pass the cost on to consumers and working people. So, once again: TAX THE RICH!

DA
October 15, 2013 at 2:32 pm

Finance 101: The three most important documents are the balance sheet, statement of cash flow, and income statement.

The balance sheet lists the assets and liabilities of an organization. However, all you and other alarmists look at are the liabilities or debts. Financial solvency is not based only on debts, but on a ratio of debts to assets. Yes, the US borrows a lot of money and has many debts. However, our bonds and notes are rated very high when it comes to quality. Why? Because US assets still greatly exceed our debts.

Who is in worse shape? The homeowner who has a $500,000 mortgage or the one who has a $50,000 mortgage?

Now, what if I were to tell you that the guy with the $500,000 mortgage owns a $1,000,000 house while the guy with the $50,000 mortgage owns a $40,000 house?

Dave, I think you are not as stupid as you pretend to be. Stop being an alarmist and creating unnecessary drama.

Eochaidh MacDhalaigh OghaChruithne
October 15, 2013 at 3:27 pm

It gets worse. By 1880, there was not enough game for the American Indians to live off the land in Arizona and New Mexico. Today, there’s very little big game in the Gila National Forest and Apache National Forest south of a line going east and west of Reserve, New Mexico. In the early 20th Century, one species of elk in Arizona was exterminated from over-hunting. When America collapses, now, the big game that exists to north will be gone in a matter of months. THERE’S NO PLACE TO RUN. THERE’S NO PLACE TO HIDE. Alaska???? You better get there now, if you’re going to live off the land.

michelle
October 15, 2013 at 8:51 pm

perhaps a year of jubilee. but, perhaps that will not happen here….. yet

AndyB
October 16, 2013 at 8:21 am

The author should have noted that in the event of any TBTF bank dissolution or bankruptcy, the derivative positions take priority over both bold holders and account holders. Good luck in getting your money out of the bank should that happen. I strongly suggest that anyone’s bank account should keep a low enough balance only for bill pay.

bakerboi
October 16, 2013 at 10:01 am

@chris man, you have hit the nail on the head with this one. that is the TRUTH brother and you just turned me on to something that in the book of Daniel when he said that satan will have power to change the times and law Daniel 7:25- “And he shall speak great words against the most High, and shall wear out the saints of the most High, and think to change times and laws: and they shall be given into his hand until a time and times and the dividing of time.” Not only did he do this with the Constituion, but also with the sabbath (Catholic Church). Wow, Lord have mercy, that only way we get out of this is to humble ourseleves and flip the table over like Jesus did and get rid of the vipors and snakes. However, as we know that will not happen because it was already written, we have cut off our nose to spite our face and now we must go through this and beg for forgiveness to the most high Jesus.

[…] There are three numbers that every American should be paying attention to and they are (1) the national deficit, (2) the unfunded liabilities debt, and (3) the derivatives/futures debt. When any reasonable person looks at these three sets of numbers and related statistics, there can only be one conclusion, which I will present at the end of this analysis. […]